‘It gives confidence to investors’ – Minister Jordan

─ On motion to grant similar conditions given to ExxonMobil to Mid-Atlantic Oil and Gas

DPI, Guyana, Wednesday, August 8, 2018

A motion to grant the same conditions to Mid-Atlantic Oil and Gas, as is granted to ExxonMobil for tax and concessions purposes, was successful carried following a vote in the National Assembly this evening. Finance Minister, Winston Jordan, in support of the motion, reasoned that this is a means of building investor confidence, noting that it would send a positive signal.

“A small Guyanese company must not be made to suffer as it signifies that the sanctity of contracts will continue to be affirmed and the government will uphold its end of the deal.”

The minister’s motion was in accordance with Section 51 of the Petroleum (Exploration and Production) Act No.3 of 1986, which affirms the Petroleum (Exploration and Production) (Tax Laws) (Mid-Atlantic Oil & Gas Inc.) Order 2018 – No. 26 of 2018 which was made on July 30, 2018, under Section 51 of the Petroleum (Exploration and Production) Act, No. 3 of 1986 and published in an Extra Ordinary copy of the Official Gazette dated July 30, 2018.

Questions were raised about new possible terms and guideline changes following the discovery of confirmed oil reserves and possible renegotiations by the Opposition. The Finance Minister noted that at the end of the day, the order speaks to a specific issue, regarding a contract signed since March 2015 under the previous administration. The order simply gives effect to what has been signed and agreed to by former President Donald Ramotar, the minister explained.

By: Paul McAdam

Images: Department of Public Information